Bitcoin (BTC) cryptocurrency rate broke the resistance at $ 10,700. At the same time, the powerful barriers were formed at $ 10,800 and $ 11,000. Therefore, BTC/USD should drop to $ 10,000 by September 22nd.
Bitcoin is up 6% this week. On Monday, the bulls broke through the $ 10,500 barrier and pushed the rate to $ 10,827 (Bitstamp data). Currently, the virtual currency is trading at 50% Fib fixed during the BTC growth from $ 10,633 to $ 10,827. Thus, the downward movement will accelerate after the price of BTC drops below $ 10,700.
The bullish trend will meet strong resistance at $ 10,800, $ 10,850 and $ 11,000. The nearest support barrier is located at $ 10,700 (61.8% Fibonacci level), the next one is at $ 10,580 (previous resistance zone). Therefore, breaking the second barrier will mean a drop in the Bitcoin price to $ 10,000.
The Fan Gann technical analysis tool, developed by financial astrologer William Gann, suggests that the BTC rate almost broke through the historical resistance zone. The asset price rose to the upper border of the fan 144 weeks after reaching its maximum in December 2017. However, the bulls were unable or unwilling to break through this barrier due to the dump in early September.
Using the Gann Square, it can be assumed that Bitcoin is on the eve of a new bull run. If we take into account the previous peak values reached by the cryptocurrency as a result of pumps, then the value of the asset will not fall below $ 10,000 during the next cycle. This zone acts as the key support zone. At the same time, the resistance will be located in the region of $ 200,000. In the case of parabolic growth, Bitcoin value will rise to this level within two years.
4 hours MACD is in the bullish trend zone.
4 hours RSI is above 60 (in the neutral zone).
Major Support Level – $ 10,000.
Major Resistance Level – $ 11,000.
The nearest pivot points are $ 10,532 and $ 10,997.